KIT digital Announces Final Phase of Restructuring
NEW YORK, NY -- (Marketwired) -- 04/16/13 -- KIT digital, Inc.
("KIT" or the "Company"), a global provider of Digital Television and
Media solutions, announced today that it has reached an agreement
with three of the Company's largest shareholders, Prescott Group
Capital Management, JEC Capital Partners, and Ratio Capital Partners
(collectively the "Plan Sponsor Group"), to sponsor a reorganization
of the Company under chapter 11 of the U.S. Bankruptcy Code. The
reorganization is expected to be effectuated pursuant to a Plan of
Reorganization (the "Plan"). This is anticipated to include, among
other things, a recapitalization of the Company fully backstopped by
the Plan Sponsor Group, an opportunity for all existing shareholders
to participate in the recapitalization, and the regrouping of the
core operating entities Ioko 365, Polymedia, Kewego, Multicast and
Megahertz into a newly formed group entity called Piksel. Through the
Plan, the Company expects to be in a position to pay all vendors,
suppliers and other holders of valid pre-petition claims.
Only the non-operating parent holding company, KIT digital, Inc.,
will commence a chapter 11 case to effectuate the proposed
restructuring. It is anticipated that the chapter 11 filing will
occur by April 24, 2013. KIT digital's already profitable operating
subsidiaries, including Ioko 365, Polymedia, Kewego, Multicast and
Megahertz will not be impacted.
KIT has taken this action, with the support of its Independent
Special Committee of the Board of Directors. William V. Russell,
Non-executive Chairman of the Board of Directors, added, "We are
pleased to announce this comprehensive solution that will provide KIT
with relief from the financial, legal, and regulatory issues
currently encumbering it. The Plan allows all shareholders the
opportunity to participate in the future growth of the Company and at
the same time it will complete the Company's restructuring by
strengthening the balance sheet and positioning it for profitable
"The Plan provides certainty and comfort to our customers and
employees and it will allow the reorganized company to aggressively
pursue growth opportunities with confidence," said Peter Heiland,
Interim Chief Executive Officer an
d Plan Sponsor Group member. "By
moving the core businesses forward together unburdened by the issues
currently plaguing the corporate parent, our customers and products
can once again become the sole focus of this exciting business."
Additionally, the Company has entered into a forbearance agreement
with its secured lenders, which provides that the secured lenders
will not exercise any remedies against the Company through April 23,
2013, while the Company completes the necessary Plan documents.
About KIT digital, Inc.
KIT digital is a leading video management
software and services company. With its proprietary OVP and OTT
platform products, Cloud and Cosmos, as well as systems integration
and solutions design expertise, KIT delivers complete video solutions
to clients, helping to power the transformation from traditional
broadcast to multiscreen broadband TV. KIT digital services nearly
2,500 clients in 50+ countries including some of the world's biggest
brands, such as Airbus, The Associated Press, AT&T, BBC, BSkyB,
Disney-ABC, Google, HP, MTV, News Corp, Sky Deutschland, Sky Italia,
Telecom Argentina, Telecom Italia, Telefonica, Universal Studios,
Verizon, Vodafone VRT and Volkswagen. KIT digital maintains
headquarters in New York City with offices around the world. Learn
more at www.kitd.com and follow on Twitter.
KIT digital Media Contact:
VP Brand and Communications
T: +1 (347) 328 3545
TallGrass PR Media Contact:
T: +1 (917) 684 1400
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